A stock has a beta of 1.13 and an expected return of 12.1%. A risk free asset currently earns 5%.

a) What is the expected return on a portfolio that is equally invested in the two assets?

b) If a portfolio of the two assets has a beta of .5, what are the portfolio weights?

c) If a portfolio of the two assets has an expected return of 10%, what is its beta?

d) If a portfolio of the two assets has a beta of 2.26. What are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain.